Rising Johnson & Johnson orders set to boost Intai

By Camaron Kao / Staff reporter

Intai Technology Corp (鐿鈦), which makes parts for surgical instruments, precision hardware, and radio frequency and microwave switches, yesterday forecast a revenue increase of between 10 percent and 15 percent this year as it benefits from rising orders from Johnson & Johnson.

The company, which ships metal parts to Johnson & Johnson to make instruments for minimally invasive surgery, will distribute 40,000 units of its second-generation products to the US health giant, up from 20,000 units last year, Intai chief financial officer Lily Su (舒麗玲) said at an investors’ conference in Taipei.

HIGHER SHIPMENTS

Shipments of the company’s first-generation products to Johnson & Johnson would also increase 10 percent to 220,000 units this year from 200,000 units, Su told investors.

The US giant accounted for 52 percent of Intai’s total revenue last year.

“Intai and Johnson & Johnson have been business partners for 20 years, and there are still many ongoing co-development projects,” Su said.

The company plans to spend between NT$120 million (US$3.98 million) and NT$150 million this quarter to expanding its production capacity to make radio frequency and microwave switches, which are to be used by Foxconn International Holdings (富士康) to test the iPhone 6 this year, Su said.

Orders for the switches are set to rise about 50 percent from NT$167 million a year ago, the company said, adding that the product has a gross margin of nearly 50 percent.

IMPROVED PROFITS

The company’s net profit was NT$243.42 million, or earnings per share of NT$6.05, last year, up 39.34 percent from NT$174.7 million, or earnings per share of NT$4.67, the previous year, while gross margin improved to 38 percent from 32 percent, according to a company filing to the Taiwan Stock Exchange.

The company posted revenue of NT$1.51 billion last year, up 12.31 percent from NT$1.35 billion the previous year, with sales of parts for medical instruments accounting for 58 percent, followed by precision hardware, with 31 percent, and radio frequency and microwave switches with 11 percent, the company said.

Last quarter, the company reported 16.56 percent revenue growth to NT$384.31 million, up 16.56 percent year-on-year.

STRIVING FOR GROWTH

Su said the company would strive to post 15 percent to 20 percent profit growth this year as sales of its products with a higher gross margin increase.

The company plans to distribute a cash dividend of NT$4 this year, which is a payout ratio of 66 percent and a dividend yield rate of 2.17 percent based on the stock’s closing price of NT$184.5 on the Taiwan Stock Exchange yesterday.